Elon Musk has launched Tesla's steering-wheel-free Cybercab service in Austin, Texas, deploying dozens of autonomous vehicles without traditional controls like steering wheels or brake pedals. The move signals a significant push into the robotaxi market, betting that passengers will overcome concerns about relinquishing control.
The gold-colored Teslas are designed to offer a fully autonomous ride experience, leaving passengers with no manual override in emergency situations. Tesla teased the launch on X, with Musk posting images of the vehicles, describing it as a "Storm of Cybercabs."
This initiative comes as Tesla faces increasing competition in the autonomous vehicle space. The company trails Waymo, a leader in the robotaxi sector, in terms of deployed vehicles and completed trips. Tesla's camera-only system must demonstrate its safety and reliability in navigating complex urban environments and interacting with pedestrians, in contrast to rivals like Waymo and Amazon's Zoox, which incorporate lidar and radar technology alongside cameras.
Public acceptance of driverless technology remains a significant hurdle. A February Pew Research Center survey indicated that seven in 10 U.S. adults are uncomfortable riding in a driverless car, with only a small percentage expressing comfort. Separate Gallup polling from 2025 showed a rise in skepticism regarding the safety of autonomous vehicles.
Tesla's financial performance has also been a point of concern. The company experienced a second consecutive annual decline in vehicle sales last year, with profits dropping and losing its position as the world's top-selling electric vehicle maker to China's BYD. Tesla shares saw a modest rise of over 5% on Thursday amid hopes for the new taxi service.
While Austin already has a Tesla robotaxi service, those vehicles are equipped with steering wheels and pedals and initially operated with safety drivers. Tesla now has over 200 unsupervised robotaxis operating in several Texas and Florida cities, though Waymo operates more than 4,000 such vehicles across 14 cities.
Musk's vision extends to a future where Tesla owners can convert their own vehicles into taxis via software updates. However, regulatory bodies in the U.S. and Europe have expressed concerns. Tesla has faced investigations into the safety of its partial self-driving software, including its role in crashes and instances of running red lights or driving on the wrong side of the road. The company has also faced scrutiny for delayed reporting of accidents.